The Globalization of Urban Housing Markets: Immigration and Changing Housing Demand in Vancouver

Abstract

The effect of residential capital through immigration on the internal structure of cities and housing markets has become of increasing importance. This study examines the effects of immigration on Vancouver's residential housing market as the city became increasingly influenced by global processes and the arrival of skilled and wealthy migrants. The changing determinants of housing demand are analyzed for recent immigrants and the rest of the population using Statistics Canada data for two time periods. Intraurban spatial dimensions of the changes in housing demand are examined using tract data. The analysis reveals a de-coupling of local housing from labour markets as recent immigrants' housing consumption became less tied to their local labor market participation. Labor market income measured in national datasets becomes less instructive in explaining housing market outcomes and neighborhood change if immigrants arrive with established wealth and continue to earn unreported income outside the country.